The Central Bank of Nigeria (CBN) has allayed fears of additional bank collapse following the liquidation of Heritage Bank.
The CBN gave the assurance following agitations from the public about the fate of other banks following the failure of Heritage Bank Plc and the regulatory action by the CBN on Monday, June 3, 2024.
Unverified information making the rounds suggested the CBN is set to revoke the licenses of three additional banks following its regulatory action.
“The CBN unequivocally states that these allegations are false and intended to trigger panic in the financial system. The Nigerian financial system remains safe, sound, and resilient” a statement by Hakama Sidi Ali (Mrs.) the Ag. Director, Corporate Communications.
“Our banks have begun submitting implementation plans for the Banking Sector Recapitalisation Programme in compliance with the CBN Circular reviewing the minimum capital requirements for Commercial, Merchant, and Non-Interest Banks (CMNIBs)” the statement indicated.
“These plans are currently being reviewed by the Bank. In addition to enhancing buffers to withstand economic shocks, this proactive measure by the CBN to require CMNIBs to recapitalize will result in increased capital for Nigeria’s banks, enabling them to provide much-needed credit to critical sectors of the economy. This will increase the financial system’s contribution to the growth and development of a $1 trillion Nigerian economy” the statement indicated.
“The CBN would like to reassure all stakeholders of its unwavering commitment to ensuring the financial system’s stability. Our financial system remains on a solid footing, and the CBN will continue to take all necessary steps to maintain its safety and soundness” the apex bank assured.
